Cryptocurrency exchange Kraken is reportedly in discussions to raise a pre-initial public offering (IPO) funding round that could exceed $100 million by the end of the current year, according to Bloomberg sources. Kraken has been contemplating an IPO for several years and has recently attracted interest from potential investors.

Despite not commenting on specific fund-raising or IPO plans, a Kraken spokesperson stated, "We are always exploring strategic paths towards Kraken's Mission: accelerating the global adoption of crypto. We remain fully focused on investing in this goal."

Kraken's journey towards a public offering has seen challenges, including regulatory hurdles with the U.S. Securities and Exchange Commission (SEC). The company has been engaged in legal disputes with the SEC, which has accused Kraken of operating an unregistered platform and mixing customer funds. Nonetheless, the exchange has disputed these allegations.

As for Kraken's financial prospects, insiders anticipate the exchange could generate between $1 billion and $2 billion in revenue this year. This comes in the wake of Coinbase going public through a direct listing in 2021 and is projected to achieve revenues of $5.9 billion according to estimates.

Kraken's search for a major partner to join its board suggests preparation for a successful IPO, potentially as early as next year. However, discussions remain preliminary, involving verbal exchanges concerning terms and valuations rather than formal documentation.

Bloomberg Article

CoinDesk Article